Howard Buys 5 Suits a Year When He Earns $70,000

Multiple Choice

Howard buys 5 suits a year when he earns $70,000. When his income increases to $200,000, he buys 15 suits a year. From the midpoint method, his income elasticity of demand for suits is:

A) 1.04
B) 0.96
C) -1.04
D) -0.96
E) 0.08